Editorial: Energy Tower result favorable to all

MRT

Published 5:10 pm, Sunday, May 4, 2014

Sometimes things work out just like they are supposed to.

Take the Energy Tower project. For months, there were Midlanders clinching their teeth, dreading the idea of a 53-story behemoth. Midland’s signature skyline was set to change. And admittedly some of us don’t like change, must less the type that extends way too far into the sky.

It is worth noting that the official change of heart came days after tropical storm winds wreaked havoc across the region. Maybe that sealed the deal for the two-tower concept.

Maybe Energy Related Properties William Meyer meant it when he said they listened to the people in Midland and made a change that most of us will agree is for the better.

There might be some who remember that ERP said its backup plan was a campus on the outskirts of Midland. Why wasn’t that an option? We can think of 60 million reasons. When the City Council voted to approve incentives, ERP was in the drivers’ seat. ERP might have to change its plans, but there was no reason to change its location. That would be bad business.

Meyer drove home that point in his Q-and-A. The Midland Development Corp. will pay $10 million over 10 years for infrastructure associated with the parking garage. The city of Midland and Tax Increment Reinvestment Zone will then rebate up to $50 million that the development will have to pay taxes in excess of $187 million. Will the incentive change if the project doesn’t live up to what was once promised? Not if they pay enough taxes.

The reality is, the debate over whether this was a good deal ended when the council made its historical 4-0 vote (Jerry Morales, John James, Michael Trost and John Love III voting in favor) to approve the largest incentive package in our community’s history, giving ERP all the flexibility it needed.

We can’t forget the millions (up to $15 million) the city will pay ERP for building the convention center as part of the east tower. We also assume that the convention center space is off the tax rolls as is part of the parking garage.

We hope to stop hearing the talking point that Energy Tower will lead to downtown building district taking a great burden off the residential property owner. Officials have failed to prove that yet, and with a TIRZ cap still in place, we know the full force of what downtown should pay isn’t close to what the district does pay.

In our view, Energy Related Properties has played this public-private partnership about as well as it could be expected. They sat in front of Midlanders, took their bruises and argued their case for the project. They worked a council dying to make a big splash downtown. They have bucked a trend, showing that the private sector can be more transparent than city hall about a multi-million dollar deal. They played a hand nicely.

And in the end, things worked out just like they were supposed to -- for opponents of a 53-story tower and certainly for ERP.